Significance of resource pricing and factors determining the resource demand which is different from the factors that determine product demand.

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Answer 1

Question

Chapter 16, Problem 1DQ

To determine

Significance of resource pricing and factors determining the resource demand which is different from the factors that determine product demand.

Expert Solution & Answer

Explanation of Solution

Households own the scarce resources which is their source of income. The resource pricing determines the income of households as firms acquire economic resources and pay as wage, rent, interest and profit to the household for the supply of resources. Resource pricing are the costs for the firm. Firms always desire to minimize the cost and maximize the profit. This in turn, would encourage the firms to efficiently use the scarce resource. Resource pricing helps in determining the allocation of resources in industries and firms.

The demand for products is determined by the income and tastes, whereas the demand for resources is passive based on demand of product that requires particular resources. The demand of resources depends on the demand of product. Unlike product, resources are less mobile. The demand of product is determined by geographic availability of resources. Thus, resources that demand geographically vary affecting the demand of products.

Since the demand for resources depends on the demand for goods and services, it is a derived demand. If there is no demand for goods, then there will no demand for resource too. Also, the demand for resource is determined by the productivity and its price.

If the resource price is low, then the cost of production will be low causing to increase the demand for resources and vice versa. Thus, the demand curve for resource slopes in the downward direction due to the law of diminishing returns.

Economics Concept Introduction

Concept introduction:

Resource pricing: Resource price refers to the pricing of natural and scarce resource for the optimum use.

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Students have asked these similar questions

3. Refer to the expanded table below from review question 8. LO3.4 a. What is the equilibrium price? At what price is there nei- ther a shortage nor a surplus? Fill in the surplus-shortage column and use it to confirm your answers. b. Graph the demand for wheat and the supply of wheat. Be sure to label the axes of your graph correctly. Label equi- librium price Pand equilibrium quantity Q. c. How big is the surplus or shortage at $3.40? At $4.90? How big a surplus or shortage results if the price is 60 cents higher than the equilibrium price? 30 cents lower than the equilibrium price? Thousands of Bushels Surplus (+) or Shortage (-) Thousands Price per Bushel of Bushels Supplied Demanded 85 $3.40 72 80 3.70 73 75 4.00 75 70 4.30 77 65 4.60 79 60 4.90 81

27) Of the collection of supply and demand diagrams in Figure 2.2, which one shows the result of a decrease in the price of a substitute for a good? Figure 2 P" P FE Q*Q® Q Qº Figure 3 Figure 4 S P₁ P P₁ p. P Figure 1 Q" Q Figure 2.2 A) Figure 1 B) Figure 2 C) Figure 3 D) Figure 4 18 Q't lö 27)

Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s capacity. If he adds one more worker, the firm’s total monthly revenue will increase from $50,000 to $58,000. If he adds one more tractor, monthly revenue will increase from $50,000 to $62,000. Each additional worker costs $4,000 per month, while an additional tractor would also cost $4,000 per month. LO16.5 a. What is the marginal product of labor? The marginal product of capital? b. What is the ratio of the marginal product of labor to the price of labor (MPL/PL)? What is the ratio of the marginal product of capital to the price of capital (MPK/PK)? c. Is the firm using the least-costly combination of inputs? d. Does adding an additional worker or adding an additional tractor yield a larger increase in total revenue for each dollar spent?

Answer 2

Question

Chapter 16, Problem 1DQ

To determine

Significance of resource pricing and factors determining the resource demand which is different from the factors that determine product demand.

Expert Solution & Answer

Explanation of Solution

Households own the scarce resources which is their source of income. The resource pricing determines the income of households as firms acquire economic resources and pay as wage, rent, interest and profit to the household for the supply of resources. Resource pricing are the costs for the firm. Firms always desire to minimize the cost and maximize the profit. This in turn, would encourage the firms to efficiently use the scarce resource. Resource pricing helps in determining the allocation of resources in industries and firms.

The demand for products is determined by the income and tastes, whereas the demand for resources is passive based on demand of product that requires particular resources. The demand of resources depends on the demand of product. Unlike product, resources are less mobile. The demand of product is determined by geographic availability of resources. Thus, resources that demand geographically vary affecting the demand of products.

Since the demand for resources depends on the demand for goods and services, it is a derived demand. If there is no demand for goods, then there will no demand for resource too. Also, the demand for resource is determined by the productivity and its price.

If the resource price is low, then the cost of production will be low causing to increase the demand for resources and vice versa. Thus, the demand curve for resource slopes in the downward direction due to the law of diminishing returns.

Economics Concept Introduction

Concept introduction:

Resource pricing: Resource price refers to the pricing of natural and scarce resource for the optimum use.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 16, Problem 1DQ

To determine

Significance of resource pricing and factors determining the resource demand which is different from the factors that determine product demand.

Expert Solution & Answer

Explanation of Solution

Households own the scarce resources which is their source of income. The resource pricing determines the income of households as firms acquire economic resources and pay as wage, rent, interest and profit to the household for the supply of resources. Resource pricing are the costs for the firm. Firms always desire to minimize the cost and maximize the profit. This in turn, would encourage the firms to efficiently use the scarce resource. Resource pricing helps in determining the allocation of resources in industries and firms.

The demand for products is determined by the income and tastes, whereas the demand for resources is passive based on demand of product that requires particular resources. The demand of resources depends on the demand of product. Unlike product, resources are less mobile. The demand of product is determined by geographic availability of resources. Thus, resources that demand geographically vary affecting the demand of products.

Since the demand for resources depends on the demand for goods and services, it is a derived demand. If there is no demand for goods, then there will no demand for resource too. Also, the demand for resource is determined by the productivity and its price.

If the resource price is low, then the cost of production will be low causing to increase the demand for resources and vice versa. Thus, the demand curve for resource slopes in the downward direction due to the law of diminishing returns.

Economics Concept Introduction

Concept introduction:

Resource pricing: Resource price refers to the pricing of natural and scarce resource for the optimum use.

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Answer 4

Question

Chapter 16, Problem 1DQ

To determine

Significance of resource pricing and factors determining the resource demand which is different from the factors that determine product demand.

Expert Solution & Answer

Explanation of Solution

Households own the scarce resources which is their source of income. The resource pricing determines the income of households as firms acquire economic resources and pay as wage, rent, interest and profit to the household for the supply of resources. Resource pricing are the costs for the firm. Firms always desire to minimize the cost and maximize the profit. This in turn, would encourage the firms to efficiently use the scarce resource. Resource pricing helps in determining the allocation of resources in industries and firms.

The demand for products is determined by the income and tastes, whereas the demand for resources is passive based on demand of product that requires particular resources. The demand of resources depends on the demand of product. Unlike product, resources are less mobile. The demand of product is determined by geographic availability of resources. Thus, resources that demand geographically vary affecting the demand of products.

Since the demand for resources depends on the demand for goods and services, it is a derived demand. If there is no demand for goods, then there will no demand for resource too. Also, the demand for resource is determined by the productivity and its price.

If the resource price is low, then the cost of production will be low causing to increase the demand for resources and vice versa. Thus, the demand curve for resource slopes in the downward direction due to the law of diminishing returns.

Economics Concept Introduction

Concept introduction:

Resource pricing: Resource price refers to the pricing of natural and scarce resource for the optimum use.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 16, Problem 1DQ

To determine

Significance of resource pricing and factors determining the resource demand which is different from the factors that determine product demand.

Expert Solution & Answer

Explanation of Solution

Households own the scarce resources which is their source of income. The resource pricing determines the income of households as firms acquire economic resources and pay as wage, rent, interest and profit to the household for the supply of resources. Resource pricing are the costs for the firm. Firms always desire to minimize the cost and maximize the profit. This in turn, would encourage the firms to efficiently use the scarce resource. Resource pricing helps in determining the allocation of resources in industries and firms.

The demand for products is determined by the income and tastes, whereas the demand for resources is passive based on demand of product that requires particular resources. The demand of resources depends on the demand of product. Unlike product, resources are less mobile. The demand of product is determined by geographic availability of resources. Thus, resources that demand geographically vary affecting the demand of products.

Since the demand for resources depends on the demand for goods and services, it is a derived demand. If there is no demand for goods, then there will no demand for resource too. Also, the demand for resource is determined by the productivity and its price.

If the resource price is low, then the cost of production will be low causing to increase the demand for resources and vice versa. Thus, the demand curve for resource slopes in the downward direction due to the law of diminishing returns.

Economics Concept Introduction

Concept introduction:

Resource pricing: Resource price refers to the pricing of natural and scarce resource for the optimum use.

Answer 6

Chapter 16, Problem 1DQ

To determine

Significance of resource pricing and factors determining the resource demand which is different from the factors that determine product demand.

Expert Solution & Answer

Explanation of Solution

Households own the scarce resources which is their source of income. The resource pricing determines the income of households as firms acquire economic resources and pay as wage, rent, interest and profit to the household for the supply of resources. Resource pricing are the costs for the firm. Firms always desire to minimize the cost and maximize the profit. This in turn, would encourage the firms to efficiently use the scarce resource. Resource pricing helps in determining the allocation of resources in industries and firms.

The demand for products is determined by the income and tastes, whereas the demand for resources is passive based on demand of product that requires particular resources. The demand of resources depends on the demand of product. Unlike product, resources are less mobile. The demand of product is determined by geographic availability of resources. Thus, resources that demand geographically vary affecting the demand of products.

Since the demand for resources depends on the demand for goods and services, it is a derived demand. If there is no demand for goods, then there will no demand for resource too. Also, the demand for resource is determined by the productivity and its price.

If the resource price is low, then the cost of production will be low causing to increase the demand for resources and vice versa. Thus, the demand curve for resource slopes in the downward direction due to the law of diminishing returns.

Economics Concept Introduction

Concept introduction:

Resource pricing: Resource price refers to the pricing of natural and scarce resource for the optimum use.

Answer 7

Chapter 16, Problem 1DQ

To determine

Significance of resource pricing and factors determining the resource demand which is different from the factors that determine product demand.

Answer 8

Expert Solution & Answer

Explanation of Solution

Households own the scarce resources which is their source of income. The resource pricing determines the income of households as firms acquire economic resources and pay as wage, rent, interest and profit to the household for the supply of resources. Resource pricing are the costs for the firm. Firms always desire to minimize the cost and maximize the profit. This in turn, would encourage the firms to efficiently use the scarce resource. Resource pricing helps in determining the allocation of resources in industries and firms.

The demand for products is determined by the income and tastes, whereas the demand for resources is passive based on demand of product that requires particular resources. The demand of resources depends on the demand of product. Unlike product, resources are less mobile. The demand of product is determined by geographic availability of resources. Thus, resources that demand geographically vary affecting the demand of products.

Since the demand for resources depends on the demand for goods and services, it is a derived demand. If there is no demand for goods, then there will no demand for resource too. Also, the demand for resource is determined by the productivity and its price.

If the resource price is low, then the cost of production will be low causing to increase the demand for resources and vice versa. Thus, the demand curve for resource slopes in the downward direction due to the law of diminishing returns.